The Tirupati Graphite PLC (LON: TGR) share price edged 12.8% higher after commissioning a new 18,000 tons per annum (tpa) flake graphite production facility at its Sahamamy project in Madagascar. The company's total production capacity soared to 30,000 tpa, given its previous nameplate capacity of 12,000 tpa.
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Investors cheered the news as the company provided details about the new facility, which includes a new mining equipment fleet that can mine 450,000(tpa run of mine graphite ore and two pre-concentrate plants, each with 600 metric tons per day (tpd) ore processing ability adding up to 400,000 tpa of ore processing capacity.
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The new facility also includes a final concentrate plant that can produce 18,000 tons of flake graphite per annum, matching the preconcentrate capacity and a 3-km-long slurry pumping system to transport the preconcentrate product from the preconcentrate units built at the Sahasoa deposits to the final concentrate unit.
Tirupati Graphit plans to ramp up production and sales at the Sahamamy mine now that the new facility has been commissioned. The company did have a three-month delay in commissioning the new facilities due to shipping delays and the recent severe weather in Madagascar created by cyclone Cheneso.
Still, the company expects the new facility to hit 80% of its production capacity by March 2023. The firm was not adversely affected by cyclone Cheneso since its personnel had no injuries, and its property was not damaged.
Tirupati had spent the last months of 2023 strengthening its infrastructure ahead of the rainy season and was well-prepared when cyclone Cheneso hit Madagascar in mid-January this year.
The company also revealed that the second preconcentrate unit at its Vatomina Mine in Madagascar had been operating since it was commissioned on 29 December 2022. The firm had also improved the average head grade at Vatomina.
Tirupati further revealed that the acquisition of Suni Resources SA from Battery Minerals Limited was progressing well. The company also noted that the global demand for graphite as a crucial component in EV batteries was quite positive.
*This is not investment advice.
The Tirupati Graphite (TGR) share price.
The Tirupati Graphite share price edged 12.8% higher to trade at 35.25p, from Friday’s closing price of 31.25p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.